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Finshots Daily

The hidden cost of free foodgrains

Nov 7, 2023
06:35
Snipd AI
Discusses the real cost and extension of PM Garib Kalyan Ananya Yojana in India. Highlights the issue of ration cards and data deficit, emphasizing the importance of accurate evaluation for free ration scheme.
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Podcast summary created with Snipd AI

Quick takeaways

  • The extension of the free ration scheme highlights the need for updated census data to prevent exclusion of millions of people from the benefits.
  • The outdated census data used for issuing ration cards results in potential exclusion of 10 to 14 crore individuals from the free ration scheme.

Deep dives

The Cost of Extending the Free Ration Card Scheme

Prime Minister Narendra Modi has announced an extension of the free ration card scheme, providing subsidized food grains to the poorest households in India. This scheme, known as the PM Garib Kalyan Ananya Yojana (PM GK AY), had initially offered additional food grains and pulses for free during the pandemic. While the cost of this program is a concern, the estimated financial burden of providing food grains for free under the National Food Securities Act is around 14,000 crore rupees per year. Though significant, it may be justifiable considering the need of the people. However, one key issue that arises is the lack of updated census data, which is crucial for proper implementation. Without conducting a recent census, millions of people may be excluded from the benefits due to the unavailability of ration cards, highlighting the need to address the data deficit alongside extending the free ration scheme.

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